# M/s. Mohan Gems & Jewels Private Limited V/s. Vijay Verma & Anr., CA (AT) (Ins.) No. 849 of 2020

> NCLAT judgment dated 2021-08-24. Citation: TCN-2021-NCLAT-00117. This case involves an appeal against an order dated 16th September 2020, passed by the…

- **Court:** NCLAT
- **Order date:** 24 Aug 2021
- **Citation:** TCN-2021-NCLAT-00117
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-mohan-gems-jewels-private-limited-vs-vijay-verma-anr-ca-at-ins-no-849-of-2020-b1c6f739

## Summary

### Background

This case involves an appeal against an order dated 16th September 2020, passed by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, in I.A. No. 1490 of 2020 in CP(IB) No.-590(PB)/2018. The I.A. was filed by the Liquidator seeking closure of the Liquidation Process as per Regulation 45(3)(a) of IBBI Liquidation Process Regulations, 2016, because the ‘Corporate Debtor’ was being sold as a going concern in an e-Auction held on 20.11.2019, with Mr. Vijay Verma as the highest bidder. The Adjudicating Authority dismissed the I.A., leading to the current appeal.

## Facts

M/s. Mohan Gems & Jewels Private Limited was undergoing liquidation. Debashish Nanda was the liquidator. An e-auction was held on 20.11.2019 to sell the Corporate Debtor as a going concern. Vijay Verma emerged as the highest bidder with a bid price of Rs. 4,51,99,713/-. The Liquidator filed I.A. No. 1490 of 2020 seeking closure of the liquidation process as per Regulation 45(3)(a) of IBBI Liquidation Process Regulations, 2016. The Adjudicating Authority dismissed the I.A., stating that the CIRP Regulation appears to rewrite IBC without amendment to the Code. The Adjudicating Authority also stated that the CIRP process is separate and the liquidation process is separate. The Liquidator then filed an appeal before the NCLAT challenging the NCLT's order. The entire

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## Issues and analysis

### Issue 1: Whether the Liquidator is authorized to sell the 'Corporate Debtor' as a going concern …

**Ratio:** The ratio is based on the interpretation of Regulation 32 of the IBBI (Liquidation

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**Reasoning:** The court reasoned that the Adjudicating Authority failed to appreciate that the

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**Interpretation:** The interpretation involves understanding that the IBC prioritizes the revival

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**Application:** In this specific case, the Liquidator's attempt to sell M/s. Mohan Gems &

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## Parties

- **Judges:** Shreesha…; Anant Bijay…
- **Respondents:** M/s. Mohan Gems &…; Vijay V…
- **Other parties:** 7th Edition…; Liquidation…; +4 more
- **Advocates:** Sumant…; Rahul Mend…; +6 more

## Timeline

- **2018-01-01 — CP(IB) No.-590…**: The initial Corporate Insolvency…
- **2019-11-20 — E-Auctio…**: An e-Auction was held where the ‘Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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